Real-Time Payments (RTP)

What real-time payments are

Real-time payments (RTP) move money from one bank account to another, with the recipient’s funds available within seconds. They process individual payments rather than collecting transactions into a batch. Payments can arrive on weekends and holidays, not just during banking hours.

In the US, the Clearing House operates the RTP network, and the Federal Reserve launched FedNow in July 2023. These are payment systems, not card brands or card-processing methods. Your business accesses them through participating financial institutions, rather than connecting directly to the networks.

RTP gives you funds in seconds, but a mistaken transfer is not a card payment you can simply dispute.

How a payment moves

The payer initiates a transfer through a bank or banking app and authorizes the money to be sent. The payer’s bank checks the account and payment, then sends the instruction through a real-time network. The recipient’s bank credits the funds and both sides receive confirmation, usually within seconds.

RTP is a push payment: the payer sends money to you. That differs from a card payment, where you submit a transaction for authorization, or an ACH debit, where you request money from a customer’s account. Access also depends on both financial institutions supporting the selected network.

What it means for your costs and cash flow

Because RTP transfers money between bank accounts instead of using a card, the transaction does not carry card interchange. That does not establish that RTP is cheaper overall: the research does not specify merchant fees, who sets them, or how bank charges compare with card processing. Compare the actual fees offered for your payment setup before switching volume.

The clearest business benefit is faster access to funds. A payment that settles within seconds can reduce the wait between completing a sale and using the money for payroll, inventory, or bills. Structured payment details can also support faster reconciliation, especially when each transfer includes information that identifies the invoice or customer.

Where the risk sits

RTP settlement is final. If you send money to the wrong account or approve a fraudulent request, you cannot rely on a card-style dispute to reverse the transfer. Recovering the funds can depend on the recipient’s cooperation, so confirming the payee and amount before approval matters more than trying to fix an error afterward.

Authorized push payment fraud uses a false invoice, impersonated supplier, or urgent payment request to persuade someone at your business to send money. Since the transfer completes in seconds, verify new or changed bank details through a separate trusted channel before paying. Apply the same check when a customer asks you to send a refund to a different account.

What you can actually change

1. 01
   Confirm the fees. Get the RTP or FedNow fees that apply to your business, then compare them with your card and ACH costs. Do not assume that avoiding interchange makes the bank transfer cheaper overall.
2. 02
   Verify account changes. Call a known contact using a number already on file before sending money to a new or changed account. Do not rely on contact details in the payment request.
3. 03
   Match payments to invoices. Use consistent invoice or customer references in payment details. This makes incoming transfers easier to reconcile and helps your team spot a payment that does not match an open balance.

Frequently asked questions